4 Tips For Getting Your Business Funded With Bad Credit

  Bad Credit: Ways to get your business funded. 

Often times, as a business owner looking to start out a business might be finding it difficult to take the first step due to unavailability of funds. Of course, anybody would advise getting a loan to start the business but a loan is easy to obtain only if the person has a good credit score. It is near or totally impossible to obtain a loan with a bad credit score. If however, you have a very bad credit score and you must start your business, there are still other options you can avail other than loans. This article will highlight some creative means through which you can secure funding for your business.

  1. Consider Microloans 

Do your research and know all there is to know about “Micro lenders” and see if you would love to deal with these people. There are a whole lot of them around and the internet is a great place to start your search. Micro-lenders are lenders who loan people money. These loans usually range from $5,000 to $30,000. The money may not be a lot but it would be just enough for you to get started. You could check out online discussion forums and communities so you can be advised on where to look for these micro-lenders.

  1. Look for Grants 

As a business owner sourcing for funds to support your business, one of the best things that would lift your spirit is getting grants. Grants are basically free money. You do not have to pay back or anything but getting a grant is easier said than done. There is a lot of work involved and a lot of time to be spent before a grant can be awarded to you. Getting a grant however makes up for the time spent in trying to get one. Do note that there are some services that claim to help businesses find grants while you pay them some money; these services are most likely scams and never deliver on their promise. One of the best ways to get a grant for your business is to look for business-specific grant programs. Some grants cater for specific demographics like veterans, widows, single mothers or small business owners.

  1. Consider Crowdfunding 

Another option to consider when looking for ways to fund your business is crowdfunding. If you are able to pull off a successful crowdfunding, it would definitely go a long way in helping you settle down with your business. There are different crowdfunding services such as Kickstarter and Indiegogo where you can design your campaign and pitch your business idea to people who might want to fund your business. There are individuals who would be looking to put money behind small businesses and even major investors who may want to throw their weight behind new businesses. However, to have a successful crowdfunding, you will need to spend some money on campaigns at the start.

  1. Talk to family and friends

 

Talking to banks and strangers may be difficult and you may find it hard to convince them to support your business. However, friends and family will easily support you because they know you, can trust you and of course would help your out with not too stringent terms and conditions. You could as well turn to your friend or family member to become your business partner. This is in fact a very good way to establish a family business.

 

 

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